OH HB234

Repeals Ohio's commercial activity tax over a five-year phase-out period, with the tax ending completely for tax periods ending before January 1, 2026.

Implements graduated tax rate reductions: 100% of the tax rate applies through 2021, then decreases to 80% in 2022, 60% in 2023, 40% in 2024, and 20% in 2025.

Maintains the existing $1 million taxable gross receipts exclusion for all taxpayers, with tiered minimum tax amounts based on business size through the phase-out period.

Preserves revenue allocation mechanisms for the commercial activity tax receipts fund, distributing proceeds to the general revenue fund, school district tangible property tax replacement fund, and local government tangible property tax replacement fund at specified percentages.

Continues motor fuel tax provisions and allows lessor cost recovery through lease agreements during the phase-out period.